The Vietnamese consumer goods sector posted the highest growth rate in Asia, according to a report released in January by Nielsen. It grew by 23 percent, while the figures of India and China are 18.8 percent and 13 percent, respectively.
The door is open wide for international investors to enter the Vietnamese consumer goods market as local businesses are facing capital difficulties and lack professional administrative management, commented a representative of the DI Asian Industrial Fund (DIAIF).
Consumer goods market saw the most M&A deals by international investors last year, with some worth as much as millions of US dollars.
One of the most remarkable deals is that of the US-based Kohlberg Kravis Roberts (KKR), which added an investment of US$200 million in Masan Consumer Corporation (Masan Consumer) in January.
KKR was completely appealed by the consumer goods market in Vietnam, when it was seeking for a new investment destination in the region, its regional head Ming Lu said in a statement.
Vietnam emerged as a hot spot for investment with its 90 million young population, and fast urbanization and rising income, he added.
Meanwhile, Toshiaki Muramoto, deputy CEO of Technopia Vietnam, the manufacturer of Jumpo mosquito coils, said Japanese investors see Vietnamese consumer goods market as a blossoming flower, full of attractiveness and exploration.
“That’s why Fumakilla has recently spent $8 million to acquire the Jumpo manufacturing plants in Vietnam from the Malaysian partner,” he said.
While many other sectors have been struggling to maintain operation over the economic slowdown, those in the consumer goods sector still posted high growth and whopping profits in 2012.
Vietnam’s largest dairy producer Vinamilk enjoyed a VND27.3 trillion ($1.31 billion) profit in 2012, a 23 percent year on year increase, according to its financial report.
2012 is also a successful year for NutiFood, another local milk producer, with its sales growing by 30 percent.
Beverage and confectionary manufacturers too reported positive business results in 2012.
Tan Hiep Phat said its plant in Binh Duong had to operate at full capacity last year to produce 1 billion liters of beverage of all kinds to meet demand. The company is investing in two more plants in the central and northern regions to expand market, its external relation director Nguyen Tan Phong said.
Kinh Do Bakery also announced a VND528 billion profit in 2012, an enormous 52 percent growth compared to 2011.
Source Tuoi Tre News